Investment mantra: To invest in companies that generate above-average returns, have scalable business models, efficient managements and are available at reasonable valuations.
Best call over the past few months: Going underweight in IT services, and holding on to Bharti, which has performed consistently.
Worst call over the past few months: Being overweight in capital goods and construction sectors. The liquidity crunch has delayed the capex plans of most coporates.
Top picks right now: Telecom, which offers growth prospects over the next couple of years; banking, which will offer short-term gains due to falling bond yields; and consumer non-durables, which will benefit from lower commodity pricing.
Advice to small investors: Invest in equity markets primarily through mutual funds and rebalance your portfolio as per your targeted asset allocation.
Worst mistake made by small investors: Getting carried away by momentum investing, which leaves them holding overvalued stocks after smart investors have exited them.
The Birla Sun Life Equity Fund
